coming up on r t the un is putting security agencies and chack its leading senior counterterrorism official has just launched an investigation into the questionable surveillance programs of the u.s. and the u.k. more on this story coming up and what is your facebook status to tell the world about you new research shows how personality traits can be deciphered from something as simple as a facebook status update will have the full breakdown on this just ahead and detecting the undetectible lawmakers have extended the nationwide ban on plastic guns so what does all of this mean for the regulation of three d. printers more on that later in the show.

it's tuesday december third eight pm in washington d.c. i'm in the ira david and you're watching r t. a united nations senior counterterrorism official is now launching an investigation into the surveillance activities of both the u.s. and u.k. intelligence agencies u.n. special rubber tore ben emmerson announced that he would initiate an investigation in an op ed he wrote that was published by the guardian in the article i'm racin says there are five areas of contention that are worth of value waiting including whether snowden deserves whistleblower status whether his leaks damaged u.s. or u.k. national security whether his leaks signify the need for surveillance overhaul whether british parliament was misled about the intrusive miss of surveillance and whether british parliament's current intelligence oversight system is thorough enough over the course of the next year emerson is expected to lead

a comprehensive investigation after which he will deliver a series of recommendations to the u.n. general assembly next fall and in that same op ed emerson also took the opportunity to call out the prominent political voices who have suggested that the guardian face a criminal investigation for its publishing of multiple edward snowden leaks he said quote these issues are at the apex of public interest concerns the astonishing suggestion that this sort of journalism can be equated with aiding and abetting terrorism needs to be scotched decisively is the role of a free press to hold governments to account the guardian's editor alan rusbridger defended the publication and a parliamentarian hearing today in which members of the parliament attempted to blame the guardian for a national security breach r t sarah firth has more. well was the hearing it was it was lively at times it got quite heavy handed i think it's fair to say the editor

of the guardian newspaper managing to answer all these questions but some of the questions i think all of raised some eyebrows certainly we heard at one point and then p. i asked alan rusbridger do you love your country now that wasn't the only question that is going to be raising eyebrows we also heard one m.p. seemingly compare some of the guardian disclosures of the edward snowden files to the leaking of secrets to the nazis let's take a listen to that this is if you. want to do it from somebody down to the bridge to the dots now the question session all the more interesting if you compare it to what six place at the beginning of last month and there we saw the heads of the u.k. intelligence agencies and my five m i six g c h q and they had come before another parliamentary committee and they're questioning much calmer much more coordinated and so i think this is something that the editor of the guardian also made note of

in his questioning today because of strictly the did was do with by the i received the following. can we assume you're having discussions with your american colleagues the hundreds of thousands of people who appeared in this during. all three of us to go to those discussions jim drew thank you very much was coming towards the end of that session we heard alan rusbridger asked if the guardian would continue to publish revelations and he said that they wouldn't be intimidated but they wouldn't behave recklessly and that was quite important i think in today's session he really made note of the level of scrutiny that the journalists involved in publishing these stories undertook and saying that they have behaved responsibly and has sparked this debate now about the scope of the surveillance that intelligence. agencies in this country have undertaken say and i think this debate not going away anytime soon that was artie's sara firth. for most people facebook

is a place where they can share photos or catch up with long lost friends however the social media site may have a darker side and a new study called the dark side of facebook swedish researchers found that status updates can indicate certain personality traits including psychopathy narcissism and machiavellianism to conduct the study dinello garcia and sverker six trump reviewed the status updates of over three hundred americans in combination with personality tests participants were asked to answer a personality survey then submit a number of facebook status updates which were analyzed with an algorithm that measured the significance of the words in their abstract researchers noted that the status updates of the people whose traits were identified as psychopathic or narcissistic had more odd or negative status updates with them often making reference to pornography prostitution butchers and decapitation i was joined

earlier by sverker six drum professor and cognitive psychology at lawn university in sweden he was one of the researchers of the study he first filled us in on the meaning of the word psychopathy so copiously. over em both speed. through shaking they are we don't feel somewhat. like seeking excitement and they don't get extra much about people's emotions. now as i understand it the study took a look at both a personality survey and the kinds of words used in facebook status message updates can you explain what exactly you were looking for in both the survey and those status updates to determine if the person has psychopathic tendencies. yeah so look the people system does updates on face book they did it in order to participate dad to do at least fifteen updates and then they also did

a number of personality trait. tests five. and those were the doc the docs tried psychotic systems and they were to spend our system and also look at that extra large um. and or to some and then we were interesting whether we can look at the status update and to determine whether what type of personality to happen so he used a statistical method of looking at the meaning of if status updates to a particular personality traits and what we found was that the pronouncer of shapes that was expressed predictors so it's psycho to some very interesting or can you define the the quote whole dark tree ad you studied and found manifested in facebook status updates yeah. these are three traits that's often go together and therefore they talk about the message as the dark triad like three traits and that

psychotic. as i defined earlier and also have in our system my system it's like self glorifying that i'm the bad guy and we're basically and machiavellian smith is it like to call them in a police good traits trying to control other people and one of the me you mentioned i'm narcissism i'm interested to know how you know what kinds of things did you look at in order to determine that. so we didn't this is like a computer that complication all methods and so we look at statistical relationship between with what the meaning of words and these personality traits. so. if you didn't make any judgment ourself it was this our region that meant produce this assault and what we found is that that some some. some aspect at some more

important than i with things like if you have a high old cycle to some then it's down to how we're all status updates like strange like weird world second you're kind of and also tends to be rather like can they get to like us and swear words but that's not the what's going on kind of statement. ok and how about for example machiavellian can you talk a little bit about how that one was examined particularly. yes and so that would be much like taking control of the people like. we don't really have to have to sixpence a boy are we doing so i can read like take these decisions myself it's kind of like you want to control other people. like a game power and they don't i'm not so emotional about how do you think and feel very interesting now considering the participants of the study actually knew that

they were being evaluated how were you able to make sure that their responses were natural and not tainted in any way. well face substates or like on their previous facebook history so they have to paste him like a bastard in updates of some so that you couldn't remember like at all and before that the atheist personality chats. so they wasn't like you were about exactly how bill a ship between these two. and some people looking at the results of the seti are going to say that the researchers looked a little too deeply into the status update that you can't diagnose a person based on their digital profile what do you make of that argument. well i think that's basically. the interesting finding in the state that you we actually can do that so it's it's statistically significant results and.

we basically looked at someone like train a model and some of the data and then and then check it on the other data and we found that we actually could do this. and further what's the potential for this research going forward what kind of implications could this have. so this research seems to indicate that we can predict at least some of the traits of the dark traits of personality and facebook updates so potentially we could develop like year warning signs so old discovery going to look into it could possibly have some tendencies to be psychotics or you could also look at it like this particular state even if the person isn't acceptable at a door does statement i don't whiting like could be interpreted in that way. so this could be like helping us to easily get to know other people on the net and

then also. trying to make yourself communicates who we really are bright by. giving feedback to yourself what you're actually i'm sure a lot of people didn't know that there could be some kind of psychology basis and their facebook status message updates but tell me why did your team choose facebook specifically rather than for example another social networking site like twitter. if there will come to me right can we make clear i don't know if you just want to have a good date i'm doing so sort convenient for us and claim that there are functions where you can like take cole do all the status updates so it's. it will simulate communion sample we need to be emergent to do this and to tell us well it was your ship that was. a professor in cognitive psychology at one university and

sweden. and president barack obama met with the president of colombia juan manuel santos earlier today at the white house the two leaders were holding talks focused on the growing economic relationship between their two countries they spoke about everything from free trade to labor rights however there was one other item on president santos is agenda while in washington d.c. and that's the ongoing peace talks between his government and colombia's leading rebel group known as the fark artie's liz wall has more of president obama's meeting today with the president of colombia comes as the country is in the middle of peace talks with fark the largest rebel group in colombia president obama told president santos today that he supports the ongoing peace talks i congratulated the presence of the us on his bold and brave efforts to bring about a lasting and just peace inside of colombia in his notions with the far. obviously

this is been a longstanding conflict within colombia it is not easy. there are many challenges ahead but the fact that he is taking the stand i think is the right one of the dialogue aims to add fifty years of conflict between colombia and at this rebel group the conflict has led to hundreds of thousands of deaths and many more displaced now fark is considered a terrorist. ization by the government of colombia but the leftist groups as that they represent the poor rural population of colombia last december r.t. spoke to a member of this group she is a dutch militant that left the netherlands a decade ago in order to fight alongside the rebels here's what she told r.t. regarding the group's struggle for political representation most of those who have always asked for dialogue into peaceful solution but the colombian government has

kept us banned from politics we took up arms not because we wanted to because we enjoy fighting we only use them as a means of justified protection from the terrorist ways of the colombian government you know that a lot of press conference after the meeting with president obama president santos said that he is cautiously optimistic about the negotiations between colombia and the rebel group he said more progress has been made than ever before and reaching a resolution how are they going to participate in politics the transition from bullets to votes from arms to arguments. what are how is it that we're going to open the space for them and this point is something that. could have been democracy needed anyway so the way to end a. program of this sort is by sitting down and negotiate the sliding

agreement and that's what we're trying to do. some people are saying that we are giving in to the fark or that we are. giving in to the gushed rule or the charges regime this is nonsense now while these talks are described as his story a lot of people are skeptical that a resolution will come anytime soon in this conflict that has spanned five decades now president santos himself today admitted that resolution isn't going to come overnight and refuse to set a hard deadline for a resolution here in washington liz wahl r.t. . and lawmakers in the house of representatives voted to extend a plastic gun man did a as they ran up against a deadline for its expiration the undetectable firearms act which was first and acted in one nine hundred eighty eight and reauthorized in two thousand and three makes it illegal to quote manufacture import sell ship deliver possess transfer or

receive any firearm but some detectable by metal detectors and x. ray machines however this time around a new provision was up for discussion democratic senator charles schumer has been wasting his concern over three d. printing technology which has advanced to the point that anyone with one thousand dollars and an internet connection can access the plastic parts that can be fitted into a gun those firearms can't be detected by metal detectors or x. ray machines that's why senate democrats were looking to amend the law before its passage to mandate that metal must be a permanent component of the gun thereby closing the loophole that would allow removable metal parts on the other hand republican sought to pass the bill in its current form and that's exactly what happened this afternoon in the house now the senate will take up the matter when it returns on december ninth the same day the law will. sunset the national rifle association hasn't publicly taken

a stance on the legislation however gun owners of america a smaller gun rights group called the gun ban extension unnecessary because three d. printing technology is not get widely available and using a three d. printer to replicate plastic guns may not be the only battle at hand this practice can also be used to print metal guns artie's marina port got an inside look at the shooting range in austin texas where gun enthusiasts have access to the world's first three d. printed metal gun. red's shooting range in austin texas is normally packed with gun enthuses. today the difference is that these men are firing rounds with a do it yourself firearm the world's first three d. printed metal gun we wanted to showcase the abilities of what direct metal can do eric much later is a project ford major at solid concepts a company specializing in three d.

printing here in prints or in the arts he was granted an exclusive tour of their austin facility which boasts ten three d. industrial printers and a glimpse of our technological future these are all the three d. printed parts that went into making this bar after getting a federal firearms license the company used a process called direct metal laser centering to produce this browning nine hundred eleven pistol the three d. printed in metal gun has fired over one thousand rounds in the meantime solid concepts has manufactured its second nineteen eleven firearm solid concepts insists the stainless steel firearm they've introduced to the world can't be replicated by hobbyists use machine started six hundred thousand and go up to a million dollars they need to be an industrial environment so they require more electricity than is available in residential areas and it will be years before metal printers become available on the consumer market not exactly the world's

first mini metal maker has already been created and with laser centering patterns set to expire in february it's predicted that metal desktop printers will hit the consumer market before even as the world has learned the convenience of technology has a downside we all love to the internet cell phones e-mail and social media before finding out that our beloved data is being monitored and stored by the n.s.a. . the astonishing capabilities of three d. metal printers is now. longer a secret. so when they become a part of our household taps alongside the microwave and flat screen t.v. . or what people choose to physically create in the privacy of their own. beyond the control is to. bring up for nigh on r.t. texas every day the opposition to the use of genetically modified organisms or g m

o's games more and more traction as advocates call for their respective state or country to implement food labeling laws and ban g.m.o. crops and that mounting pressure seems to be working just last july monsanto the leading g.m.o. manufacturer withdrew its applications to sell genetically modified seeds in the european union however while g.m.o. is have begun to lose their luster other chemical companies are using monsanto's bad press as an opportunity to open up the market to another questionable technique it's called mutagenesis and it's nothing new in fact it's been around for years but even though it's been an agricultural mainstay it's a process that has by a large remained on regulated so what do we know about mutagenesis and is it the next agribusiness to be tamed i spoke earlier with james shapiro a professor of microbiology at the university of chicago i first asked him to explain how mutagenesis works and how it differs from the way g m o's are modified

military tune which is the ordering genetic changes is in their actual process organisms and actively modify our of their d.n.a. and they do so especially when they're under stress that's a key to their whole lucian. genesis is treating organisms you know where it increases the number or frequency of mutations such as treatment was chemicals irradiation. but there are also natural processes like hybridizing different species or infection of viruses and bacterial pathogens that are mutagenic as well sir jim bozos are different in that they're understood to be organisms which have extra d.n.a. from unrelated species inserted into their genomes by laboratory genetic engineering this is true of the monsanto products you are talking about roundup

ready and bt toxin plants bacterial d.n.a. and sort that inserted into them. g.m.o. is also current nature. because we've learned that organisms exchange d.n.a. this is called horizontal transfer to distinguish it from vertical transfer from the parents and i think the big mistake is to think that g.m.o. those can only arise in the laboratory they are also arise in nature and they're essential to evolution well well i think you did a good job of making that there distinguishing rather the difference between what's natural and you know what's sort of all turned purposefully but just to be clear what kinds of crops have breeders been developing by using this technique well they develop the kinds of crops i mean the in the past aside resistant varieties. mutagenesis is long been used in plant breeding to get changes in the life cycle

and. the. tolerance holds and so forth. mutagenesis is just a staple of of agricultural genetics and there are been many studies out there about the effects of g.m. i was on human health what do we know at this point about the impact mutagenesis can have. well we would only know that from testing and in most cases. it will be harmless however even the most natural genetic changes can produce armful pests so we need to avoid reading plants that stimulate the emergence of pests like super weeds or bt resistant insects that cause problems with the existing g m o's so. i just want to make the point that those g m o's can even transfer their d.n.a. to wild organisms and create

a strong selective environment for very resistant pests right so going off of that i wanted to talk a little bit about how mutagenesis is sort of affecting other plants and can you just talk a little bit about that and that in how it might impact the future of farming well i think if we if we use the single resistance model which has been what's been done with g.m. owes. that's not a good way of going about it. those. plants have taken over the seed markets and they contribute to the problems of monoculture where we have to put in lots of chemical imports so they're not very helpful in the long run and as we know g.m.o. is are now facing a lot of scrutiny around the world and that means more of the market will be opened up to chemical companies like be a south and dupont who manufacture seeds using mutagenesis the seeds also happen to be cheaper to produce how do you see these genesis seeds really sort of fitting

into the market going forward. well as i said if they're based on single traits it's going to create a problem and it's going to contribute to the increasing monoculture and loss of was called germ plasm for variability that we have in the plants in nature and also develops a very chemical dependent kind of agriculture that was james shapiro a professor of microbiology at the university of chicago. and recently congress passed a bill that would allow the birthplace of the manhattan project to be turned into a tourist destination tonight's resident takes a look at how los alamos new mexico could be the home to a new national park take a look.

at. the manhattan project was the u.s. the top secret atomic bomb making effort in one thousand nine hundred forty one a massive bomb assembly plant was built for it in los alamos new mexico the project's cost nearly two billion dollars and employed over one hundred twenty thousand americans the first atomic bomb ever detonated was built there so when the bomb three u.s. used to wipe out the cities of hiroshima and nagasaki the manhattan project has a pretty horrible legacy in other words so it's only fitting that the u.s. is making a national park either way it really legislation to turn the birthplace of our nukes into a tourist destination already passed through congress this year so it's looking pretty good for it to happen brilliant

a few buildings in downtown los alamos will be part of the park properties as well as seventeen buildings at six other labs site that these site will be included in the park that's where they assembled the very first atomic bomb that was ever detonated by human. this loading building loss will be part of the park where lewis alexander sloan with kills after a slipped screwdriver accidentally began a vision reaction and to the areas where little boy and fat man were assembled will also be included in the park those were the nukes the us drop. to japan to murder hundreds of thousands of people in one fell swoop one of the feel good national park lives will make you happy so some people are against making the manhattan project site into a national park they say it's the debasement of the national park idea in general and there's a it's a glorification of one of the worst things americans or humans in general for that matter have ever done so many people are for the new park though saying that the

manhattan project is a huge part of our national history that we should remember for better or worse and i say absolutely yes i totally agree with that supporters we shouldn't pick and choose whichever historical events to commemorate in order to paint a rosy picture of what our country really is we are the country that is actually used nukes on other countries and we are the country that is currently engaged in over seventy wars we are a country that makes a lot of war and until we truly except what that history means we're destined to keep repeating it so the manhattan project park is exactly the one the u.s. deserves tonight let's talk about that by following me on twitter at the rest of it . and that does it for now for more on the stories we cover go to youtube dot com

slash r t america and also follow me on twitter at amir a david for now have a great night. technology innovations all the developments around russia. the future covered. hello there i'm marinated this is boom bust in here the stories we're tracking for you today. first up where have all the banks gone well according to statistics from the f.d.i.c the way the dinosaur will tell you about it coming right up and also a columnist and former treasury secretary paul craig roberts joins me today to discuss all things bad policy related and later on as is and i discussed high net

worth practice of her diction shopping her story it's in today's big deal you won't want to miss any of it and it all starts right now. they're our lead story today detroit now the insolvent city can now proceed with bankruptcy after a judge ruled on tuesday that the city is eligible to file making detroit the largest municipal bankruptcy in u.s. history now u.s. bankruptcy judge steven rhodes read the ninety minute reports from his one hundred forty page ruling before issuing the court's decision in his ruling he listed the

city's litany of financial woes including the loss of manufacturing jobs and population in recent decades now the long awaited decision sets up a bitter battle between the city's financial officials and its unions creditors and retirees who are expecting deep cuts in pensions as part of the chapter nine process sales of treasured city assets such as its art collection will be up for auction. elsewhere the overall number of banking institutions in the u.s. has dwindled to the lowest levels since the great depression low interest rates a sluggish economy and regulations have all taken their toll on the banking sector now the decline in banking numbers has come entirely in the form of big exiting banks with less than one hundred million dollars in assets left on their books and the bulk of those departures occurred between one thousand nine hundred four and two thousand and eleven now f.d.i.c data shows that more than ten thousand banks left the industry during this period as the result of mergers and consolidations

while about seventeen percent of the banks collapse all together now the number of federally insured institutions nationwide shrank to six thousand eight hundred ninety one in the third quarter now that's falling below the seven thousand number that it was for the first time since the federal regulation began keeping track in one nine hundred thirty four it's a long time now the number of physical bank branches in the u.s. is also shrinking from the end of two thousand and nine through june thirtieth of this year the total number of branches dropped three point two percent according to a. and move of a big coin there's a new crypto currency on the block and it's slimmer and more supple than ever before welcome light now created by a former google employee an mit graduate charlie levy like coin was built to correct some a big minor flaws and can best be described as silver to big coins gold is more abundant than big coin and like coin has grown by over four hundred percent in value since last week alone just last week now while the total market saturation

for only ever be twenty one million coins like coin has a fixed point at eighty four million coins now this keeps the price lower than that of decline but it isn't guaranteed against price inflation down the line like one is also designed to be to generate more by using computer memory rather than processing power which is what bitcoin uses and this discourages people from the digital arms race to generate. and finally china mobile it's the world's largest wireless carrier and it's taking preorders for the i phone according to fortune's philip de witt this screengrab right here is in i phone preorder now was taken from a website registered as a subsidiary of china mobile in shoes to choose who is a city just west of shanghai and has over five million people living there it's also one of the richest cities in china making i phones more appealing to the market there as well and china mobile has over seven hundred million subscribers it's quite a few. well there you have

a visitor have eyes for today as always will be tracking these stories and keeping you posted on all the latest. joining me now is economist journalist author and former assistant treasury secretary mr paul craig roberts mr roberts how are you doing today i'm just going to you're going to now i want to start off by asking you it was recently announced that timothy geithner former secretary of the treasury and new york fed president he's moving to a lucrative job at private equity firm warburg pincus is this move unexpected to you know of course not. the bank should always take care of those i'm sure. now during gardner's time at the treasury he went to great lengths to let people know that he was a life long civil servant i have covered during the financial crisis do you think that he ultimately served the interests of the bank more than you know the

interests of that would be sort of being a true civil servant or sure that's the direction the federal reserve which serves the interest of the banks and in recent years that's been the fortune all the treasury is now that the function of the financial regulatory. they all. function now since the beginning of the fed itself there's been a revolving door between wall street and the lender of last resort now even paul warburg advocated for the creation of the fed and he was appointed to to its first board by president wilson my question to you how big of a problem is this revolving door and is it something that needs to be prevented. well they wouldn't be able to. the federal reserve was formed in the war room to serve acts. that the public is often told that it's

there to provide full employment moment pleasure about that's just a cover story program service there to make sure that the big banks not all the banks just a few big banks that nothing really goes wrong for them that substantial and that's what it's been doing ever since. now i want to talk about yon for a second do you think that risen fed policy has been beneficial to the economy kind of fear yellen what's come up with her everything that she's been saying. no i don't think it has been because it's created a moment's wobble and bonds and stocks and it commits the federal reserve to printing you know huge amounts of new dollars and the huge amount of money printing alternately has to threaten the value of the doll act

people's confidence in ns war reserve currency so i think it's really been detrimental to the economy and certainly been detrimental for savers especially retired people who don't like to risk their life savings and stock market because they don't know that it will live long enough to see a recovery should the market correct and they are dependent on interest income they've had no interest and come down for a number of years so we follow suit that does not serve in the market people or the economy it serves the banks that are too big to fail or the whole purpose of the policy is to keep the prices of the debt related securities or derivatives that debt related to remain to. explore high

when you buy bonds all debt crisis rise with the treasury is in the mornings back securities this takes some of the toxic assets away from the big banks and it's it supports the balance sheets of the backs and makes them look a lot more solvent so that's the real purpose of the policy. now i kind of begs the question is the fed itself experiencing diminishing returns with its ongoing q.e. program and so it sounds like you might actually might think yes. well yes i think that the fed can get out of. their own way that if they stop it then we know bond prices will fall interest rates will rise and stock prices will collapse and there are natural crisis and the banks the big banks that they say that are too big to fail they will be in trouble again so the fed is counting the locked in to this policy and it really will have to continue or i think it will contain here

until something happens to the dollar. because they keep turning more dollars more . someone holding doll of denominated assets you're watching your dollar holdings be diluted at the two thousand deluded at the very simple. the world may move away from you know they're already starting to move away from using the doll it's the. currency for settling trade imbalances. the chinese currency has now moved up to number second but of course the dollar is still the major currency choose to several international trade accounts at some point when the demand for the dollar and that role. climb substantially this can break the fed's control bring the whole thing to

a yeah now you said that right now is that something happening to the dollar what do you think that something will be. well i think it's what we see happening in the chinese announced recently that they do not need to accumulate in the mall foreign currency reserves which they made dolls so that's an indication that they see us to recycle their trade surpluses with the united states into the purchase treasury debt so that means if they stop doing that that the federal reserve to keep the bottom priced society will have to buy more bottoms. and we say that china has an agreement japan and australia to settle their trade imbalances in their own currency so that new single ball and we have the brics you know russia china brazil india south africa making

a similar agreement that they will settle their trade imbalances between themselves in their own currencies so this means that the demand for doll as a as the world currency as a means of payment fogs and so in the current sim market that should mean that the dollar's exchange rate falls relative to all the currencies. when all these mechanisms are already in place and while they use i would expect to see a long struggle for the value of the doll now that since united states is such an import dependent country. it means all the imports of things coming into the country would would then cost more so the inflation would be imported into the country for all the dollars loss of the change the value and so then the american people would be faced with an all or relatively high level no one moment that

they're experiencing and inflation and there's no real economic policy solution for that. now mr roberts i have to go to a quick break but please stick around because after the break we will continue our discussion on q.e. fed policy or lack thereof and everything else that we can talk about with here also rachel kearns is joins me in today's big deal to talk about insurers addiction shopping just in time for the holidays and as we head to a quick break here's a look at some of today's closing numbers station.

and. i would rather as questions to people in positions of power instead of speaking on their behalf and that's why you can find my show larry king now right here on our t.v. question or. welcome

back now economist author and all around that insider paul craig roberts is with me now we're continuing our discussion now mr roberts i want to start off this this section by talking about former fed official andrew czar now he published an op ed in the wall street journal and in this piece he claimed that the true purpose of q.e. was to support the banks i want to ask you is there a way to conduct a monetary policy without benefiting the banks or is this just in an editable outcome of conducting monetary policy. where yes you could conduct a mentor policy with the benefit of the country and. with the stability every want a job. but that's not what the fed was created do it was created by the big banks to serve they control that ever since so

what andrew says is exactly what i've been saying it's just that he was the insider or rigidly implement the policy. and when he saw what it was really for was to support the banks he resigned. and that's very rare it shows that he is the principal so i don't think that without some kind of a rogue nation. that the power brakes whole could be broken i think. right. now it seems that current fed policy that encourages private debt by keeping interest rates so low and for such a long period of times do you sit fed policy is shifting the power structure here in the u.s. kind of giving more power to the banks in some way. well the financial crisis and the response to it has given

a lot more power to the banks because of the consolidations. new order that we get in this program. that they let the small banks fail big banks private. so big banks get bigger and bigger and bigger and there's no longer an antitrust act and the argument used to be that competition requirement. that you didn't terms get too large to get too big of a share of the market that they had to be able to compete against each other but now what they said is no you can't compete with global economy unless the banks are here. almost like office so i don't you know i just don't see you know all. the response to the one hundred crisis has done anything except benefit the buyers. now larry summers he recently implied during an i.m.f.

gathering that it's not enough to merely give big banks interest free money more should be done for the banks and some are suggested instead of being paid interest on bank deposits people should be penalized for keeping their money in banks instead of spending it now i want to this for a long time and you would know if that's possible or not why doesn't the fed somehow come up with a scheme where it charges the banks to spend less and opposed to the banks charging people to spend. well but some has this really concocting is an excuse not only to continue or quantitative easing but to increase the sierra and the only way you could have you could get negative interest rates would be if the federal reserve purchased so many bombs that it was paying a premium for the ball over its face value or. in other words suppose it's one hundred dollars odd but at the fair it drives up the prices to one hundred two so

it pays more for the ball and then the bond would ever be worth the maturity that's why you drive down the interest rates and the only and only known way that i that i can come up with so what or what this scheme a song is it is a former u.s. treasury secretary and the bomber regime was the scheme is to provide an a policy for you. for the federal reserve to purchase more all of the facts so many melbourne's that they're buying them at a premium over their face value now that would give you a negative interest rate so what would the people do they would take their money out of the banks. and do something else so the next part of the scheme is all well we don't let people have cashed in will

only digital money and that way they can keep their money at home they can only keep it and bank accounts and they are we can penalize him for saving you see the change in economic policy that dominated the united states until supply siders came along in the 1980's while said that there's a natural right. of interest and that natural rate is the rate that makes savings in investment equal at full employment and what summers is saying is that now the natural rate of interest is negative. wow well if this is an argument for the federal reserve to buy more bombs and to be such a huge demand in the bond market they'd pay premiums over the face value

on it so it looks like summers thinks that quantitative easing must contend your must increase and that he has concocted an economic policy argument to justify that that's what that's all about environment and now i want to ask you about savings the personal savings rate in the us today is currently two percentage points below the average long term how of the savings rate change under negative interest rate policy can you explain. well and you know summer's argument which was very well explained by paul prove that. they actually fail that people are saving more than investors are investing and therefore saving comes a dilution from spending so that consumers are spending money but if they would just spend everything everything would be fine but they're saving so and so the

part they're saving comes away from spending well if the investors don't step in and borrow that saving and put it all back into the economy then the spending stream has shrunk and employment rises so this is the whole change views and so he was associated john maynard keynes it goes back to the pool the second world war so what with with this view savings is bad. because it's reduction from spending and what's good is more spent the better and so i think. in my home and this argument some recent crude maybe it's really. a closer for the continuation increase quantitative easing they want to support the banks even stronger.

mr roberts that's all the time we have now but as always thank you for your insight and please come back on the show very soon i can ask you a million more questions so after in the near future that was called credit robert's economist and former assistant secretary to the treasury for economic policy under reagan time now for today's big deal. rachel curteous is joining me now during the show to talk about a new shopping trend this year shopping trying to check this out and it's actually specifically for high net worth individuals to. get a christmas shopping might we suggest for you high net worth jurisdiction shopping

yeah that's right now if you're part of that high net worth you might want to join the growing number of wealthy folks taking advantage of more favorable tax nations now according to a u.b.s. and well fed ex billionaire since this whole billionaire hotspots such as singapore switzerland and hong kong have emerged as favorite destinations for the ultra rich due to factors like quality of life good education and low taxes now in these third countries their billionaire populations grew up locally by only thirty six thirty four and twenty five percent respectively and the rest they came from afar now rachel i turn to you let's talk about this growing trend do you think it's fair let alone you know morally ok if you made your money here in the u.s. and america provided that place for you to make it free to get up and leave balance to greener tax pastures if you would think that everyone has the right to move where they want and i think it's important that we preserve that right but when it comes to the moral question that you ask for people who have benefited from anything in the united states from patent legislation to good roads to the internet

to anything like that certainly would make sense for for them to want to give back to a certain degree but i don't even think the fairness is just from the people who are running around to other countries like it's also for the people like i don't know presidential candidate mitt romney who are putting their money into tax havens so you could stay in the united states. and aspire to the highest office here and still be trying to hide away a lot of your money so to me it's like if you're moving away at least you're admitting like listen i don't want to play this money you know it legally when i don't. and i appreciate consistency about. that now check this out numerous high profile ultra high net worth americans including facebook co-founder i believe is actually a brazilian by brazilian bribe earth but then he sought refuge in the united states so one could argue that he you know just only got his money but also like bodily

integrity here in the united states we're skipping out to singapore that we're talking out of border sovereign oh yeah we're talking about of course. relayed by andrew garfield in the social network for those who don't know it's true fact. also songwriter and social i did nice rich and twenty year old. friend denise rich yes close friend of the clintons i don't like your husband i believe it was harder to have your ex-husband. help with fact you got it all over the papers today so it is about getting. another one or a letter she did last year as well all of these people are going to be out there all over the place do you think there should be new laws put onto the books to prevent this man. because what with we can't force people to stay in the united states i mean if you're going to put any sort of measure on the books maybe something like a financial transaction tax something that gets money from people before they hit the road but even that i think is really controversial the details that have to be worked out a lot of people are saying we just need to make the tax code less complex and they're right if you look at the tax code it's ridiculous there's no way i could

ever do my taxes on my own and i don't really have that many assets so i can't imagine those poor rich people and their accountants what they're having to deal with but you know i do think that when you look at so at a country's tax code you can see their priorities in the same way that a total once said you can understand a country by its prison i think you can understand a country by its tax code and the united states right now as a country that's not really sure. it's priorities are we've just been using all these kind of stopgap measures to our knowledge of the year didn't exist here that is not a big one from rachel herz is here is almost over so i was there no matter you did it in time always thank you that's all for now but you can see all segments featured in today's show on you tube but youtube dot com slash boom bust r t we also hearing from you sabrina check out our facebook page at facebook dot com slash boom bust our team from all of us here boom bust thank you for watching we'll see you next time.

i've got a quote for you. it's pretty tough. stay with substory. get this guy like me you're about done stead of working for the people most nations in the matrix work for each other right price these are. the.

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today on larry king that is legacy why didn't we learn from the band who was assassinated fifty years ago today many people of my generation are only familiar with the history class version of j.f.k. maybe you know the peace corps or the missile crisis or of course the tragedy of the assassination like j.f.k. is the only man who has an eternal flame above his grave and i think that that's not mere symbolism it's trying to be instructive so that means young people need to take up this torch and be leaders participate and ultimately get into politics even will we ever know who killed camelot and there are a lot of researchers who have gone before me and said well it was the cia it was the mob it was is jack kennedy believe texas oil they're all correct but what do all those entities have in common lyndon baines johnson i don't think l.b.j. did it i know you did it's all ahead on larry king now.